USA: Cone Mills Ends Exclusive 501s Deal, Eyes Turkish JV

Textile giant Cone Mills will no longer be the exclusive supplier of denim for Levi's 501s and is holding talks about setting up a joint venture with a Turkish denim producer to sell denim in Europe, it was reported on Thursday.

The Greensboro News & Record newspaper said Cone and Levi Strauss have amended a 1992 deal to allow Levi Strauss to buy denim for 501s from other sources beginning March 30, 2003. Cone will also be allowed to sell 501-style denim to other firms.

The North Carolina-based paper added that the amendment follows EU threats to slap a 30 per cent tariff on denim, while its plans to set up a joint venture in Turkey come as it looks to cash in on the European denim market.

Cone CFO, Gary Smith, said in a filing with the Securities and Exchange Commission: "Turkey is to Europe much as Mexico is to the US. Hopefully we'll have something to announce in the next couple months. We've been talking about this for over a year."

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